Why Verizon Is a Must-Own Dividend Stock

Verizon (NYSE: VZ) hasn't gotten much love from investors recently, underperforming the S&P 500's total return 26.2% to 121.5% over the last five years. And given the stock's P/E ratio of 10.6 based on 2021 earnings estimates, compared to 36.6 for the S&P 500, and its dividend yield of 4.5%, the market doesn't seem to like the company's future either.

After spending $45.5 billion on available spectrum in 2020, there may be a concern that Verizon has taken on too much debt and bet too much on 5G wireless with too little return on the horizon. But we're starting to see growth pick up, and with 5G Home broadband service growing this could be an undervalued growth stock with a great dividend. As an investor, I love that combination.

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Source Fool.com